The following actual contracts signed by athletes: a. $28,350,000 contract, payable at $2,025,000 per year for 14
Fantastic news! We've Found the answer you've been seeking!
Question:
The following actual contracts signed by athletes:
a. $28,350,000 contract, payable at $2,025,000 per year for 14 years.
b. $31,800,000 contract, payable at $1,590,000 per year for 20 years.
c. $25,000,000 contract, payable at $2,500,000 per year for 10 years.
Determine the present value of each contract and indicate (with explanation) which contract you would prefer to have. Assume a 9% interest rate.
Related Book For
Basic Technical Mathematics
ISBN: 9780137529896
12th Edition
Authors: Allyn J. Washington, Richard Evans
Posted Date: